Spanish real estate: prices for secondary housing continue to rise

Spanish real estate continues to show steady price growth, especially in the secondary housing market. According to the portal Idealista, in the second quarter of 2024 prices increased by 7.5% year on year, reaching an average price of 2,138 euros per square meter.

This suggests that interest in Spanish real estate continues, and demand exceeds supply.

Low supply: The shortage of new buildings on the market pushes buyers towards secondary housing, increasing demand and, accordingly, prices.

High demand: Buyer interest in Spanish real estate remains high among both local residents and foreign investors.  

Limited Construction: Over the past 15 years, municipalities have been unable to meet the demand for new residential projects, which has also contributed to supply shortages.

All autonomous communities in Spain have shown an increase in prices for secondary housing over the past year.

The largest increases were recorded in the Canary Islands (+15.4%), the Balearic Islands (+10.7%) and the Valencian Community (+10.3%).

Most expensive regions: Balearic Islands: 4,379 euros per sq.m.  Madrid: 3,440 euros per sq.m.

Most affordable regions:  Castile- La Mancha: 941 euros per sq.m Extremadura: 991 euros per sq.m  Castilla y Leon: 1,192 euros per sq.m

With the exception of Barcelona and Ourense, in all Spanish provinces prices for second-hand homes have increased over the past year.

The most significant price increases were observed in:  Santa Cruz de Tenerife: +18%  Las Palmas: +12.1%  Malaga: +11 .3%

Most expensive provinces: Balearic Islands: 4,379 euros per sq.m.  Gipuzkoa: 3,549 euros per sq.m.

Most affordable provinces:  Ciudad Real: 754 euros per sq.m.  Jaen: 841 euros per sq.m.  Cuenca: 853 euros per sq.m.

All Spanish capitals showed an increase in prices over the past 12 months, with the exception of Pamplona, ​​where prices decreased by 1.1%.

The leader in price growth was Malaga (+19.9%). Followed by Alicante (+14.4%), Palma de Mallorca (+13.3%) and Santa Cruz de Tenerife (+13.1%).

Demand is expected to continue in the near term, but potential risks such as rising mortgage interest rates and global economic instability must also be taken into account.

Additional information

In addition to the factors described above, price increases are also influenced by:  

• Low interest rates on mortgages
• Increased investment demand  
• Increased interest in living on the coast
• Inflation and rising construction costs​​​​